WFH amenability and activity: Developed vs emerging market economies
| Developed economies | Emerging economies | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
| Panel A – capital expenditure | ||||||||||
| High remote working × COVID-19 | 0.207*** | 0.064 | ||||||||
| (0.035) | (0.072) | |||||||||
| High remote working wage × COVID-19 | 0.171*** | 0.044 | ||||||||
| (0.034) | (0.071) | |||||||||
| High team interaction × COVID-19 | 0.116*** | 0.167** | ||||||||
| (0.035) | (0.074) | |||||||||
| High customer interaction × COVID-19 | −0.132*** | −0.114* | ||||||||
| (0.034) | (0.069) | |||||||||
| High Face2Face interaction × COVID-19 | −0.134*** | 0.049 | ||||||||
| (0.033) | (0.071) | |||||||||
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Country-year-quarter fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Observations | 32,355 | 32,355 | 32,126 | 32,126 | 32,355 | 19,136 | 19,136 | 19,114 | 19,114 | 19,136 |
| Adjusted R2 | 0.552 | 0.552 | 0.552 | 0.552 | 0.552 | 0.495 | 0.495 | 0.495 | 0.495 | 0.495 |
| Panel B – asset turnover | ||||||||||
| High remote working × COVID-19 | 0.017*** | 0.002 | ||||||||
| (0.003) | (0.004) | |||||||||
| High remote working wage × COVID-19 | 0.016*** | 0.001 | ||||||||
| (0.003) | (0.004) | |||||||||
| High team interaction × COVID-19 | 0.016*** | 0.004 | ||||||||
| (0.003) | (0.005) | |||||||||
| High customer interaction × COVID-19 | −0.015*** | −0.017*** | ||||||||
| (0.003) | (0.005) | |||||||||
| High Face2Face interaction × COVID-19 | −0.013*** | −0.006 | ||||||||
| (0.003) | (0.005) | |||||||||
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Country-year-quarter fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Observations | 56,819 | 56,819 | 56,534 | 56,534 | 56,819 | 20,120 | 20,120 | 20,099 | 20,099 | 20,120 |
| Adjusted R2 | 0.918 | 0.918 | 0.918 | 0.918 | 0.918 | 0.903 | 0.903 | 0.903 | 0.903 | 0.903 |
| Developed economies | Emerging economies | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
| High remote working × COVID-19 | 0.207*** | 0.064 | ||||||||
| (0.035) | (0.072) | |||||||||
| High remote working wage × COVID-19 | 0.171*** | 0.044 | ||||||||
| (0.034) | (0.071) | |||||||||
| High team interaction × COVID-19 | 0.116*** | 0.167** | ||||||||
| (0.035) | (0.074) | |||||||||
| High customer interaction × COVID-19 | −0.132*** | −0.114* | ||||||||
| (0.034) | (0.069) | |||||||||
| High Face2Face interaction × COVID-19 | −0.134*** | 0.049 | ||||||||
| (0.033) | (0.071) | |||||||||
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Country-year-quarter fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Observations | 32,355 | 32,355 | 32,126 | 32,126 | 32,355 | 19,136 | 19,136 | 19,114 | 19,114 | 19,136 |
| Adjusted | 0.552 | 0.552 | 0.552 | 0.552 | 0.552 | 0.495 | 0.495 | 0.495 | 0.495 | 0.495 |
| High remote working × COVID-19 | 0.017*** | 0.002 | ||||||||
| (0.003) | (0.004) | |||||||||
| High remote working wage × COVID-19 | 0.016*** | 0.001 | ||||||||
| (0.003) | (0.004) | |||||||||
| High team interaction × COVID-19 | 0.016*** | 0.004 | ||||||||
| (0.003) | (0.005) | |||||||||
| High customer interaction × COVID-19 | −0.015*** | −0.017*** | ||||||||
| (0.003) | (0.005) | |||||||||
| High Face2Face interaction × COVID-19 | −0.013*** | −0.006 | ||||||||
| (0.003) | (0.005) | |||||||||
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Country-year-quarter fixed effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Observations | 56,819 | 56,819 | 56,534 | 56,534 | 56,819 | 20,120 | 20,120 | 20,099 | 20,099 | 20,120 |
| Adjusted | 0.918 | 0.918 | 0.918 | 0.918 | 0.918 | 0.903 | 0.903 | 0.903 | 0.903 | 0.903 |
Note(s): The dependent variable in Panel A is Capital expenditure and that in Panel B is Asset turnover. Columns (1)-(5) show the results related to developed economies and columns (6)-(10) show the results related to emerging economies. The description of all variables is presented in Table 1. The standard errors are shown in parenthesis, which are clustered at the firm level. ***, **, *denotes significance level at 1, 5 and 10% respectively
Source(s): Authors’ computations
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